VPM TRADES,GUDIYATTAM V. ACIT, CIRCLE-1, VELLORE

ITA 1218/CHNY/2025

AI Insights

The case involves VPM Trades, a firm that appealed against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition made by the Assessing Officer under section 68 of the Income Tax Act, 1961. The Assessing Officer had increased the declared income of the assessee from 31,87,500 to 91,06,396 for the assessment year 2017-18. The assessee's appeal to the CIT(A) was dismissed without consideration of substantial evidence, including details of cash receipts and payments. The Tribunal found that the CIT(A) had not adequately addressed the materials submitted by the assessee and thus remanded the case for a fresh evaluation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839810 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 29-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: R.K.V. SUNDAR
• Section: 143(3); 68

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी इंट ूरी रामाराव, लेखा सद˟ एवं ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ । Before Shri Inturi Rama Rao, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.1218/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 VPM Trades, 24, New Street, Gudiyatam 636 202. [PAN:AAAFV1917D] Vs. The Assistant Commissioner of Income Tax, Circle I, Vellore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri R.K.V. Sundar, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 08.01.2026 घोषणा की तारीख /Date of Pronouncement : 24.02.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 11.04.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18. 2. The assessee raised 8 grounds of appeal amongst which only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made by the Assessing officer under section 68 of the Income Tax Act, 1961 [“Act” in short]. Printed from counselvise.com I.T.A. No.2745/Chny/25 2 3. We note that the assessee is a firm and filed return of income declaring a total income of ₹.31,87,500/- and the Accessing Officer determined the same at ₹.91,06,396/- vide his order dated 30.11.2019 passed under section 143(3) of the Act. As aggrieved by the said the order of the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A). We find the ld. CIT(A) dismissed the appeal of the assessee without taking into account the relevant material filed before the ld. CIT(A). On perusal the impugned order, we note that no reference whatsoever regarding the submissions made by the assessee were reflecting. The ld. AR, Shri R.K.V. Sundar, Advocate placed on record two paper books consisting of 1 to 25 and 1 to 19 and on an examination of the same, we note that the assessee filed relevant material in support of its contentions like details of cash receipts and payments, cash book for the period 01.04.2016 to 31.03.2017, details of cash received party-wise on 07.11.2016 and details of cash received party-wise on 08.11.2016, but however, the ld. CIT(A) did not look into the set of material evidence in disposing of the appeal of the assessee. We find the said material evidences are necessary for fair adjudication of the issue on hand. The Ld. DR, Ms. R Anita, Addl. CIT fairly conceded that no evidence is referred in the impugned order and reported no objection in remanding the matter to the file of ld. CIT(A) for his fresh consideration. Therefore Printed from counselvise.com I.T.A. No.2745/Chny/25 3 considering submissions of the ld. AR and the ld. DR, in the facts and circumstances, we deem it proper to remand the matter to the file of the ld. CIT(A) for fresh consideration. The assessee is at liberty to file evidences, if any, in support its contentions, thus the grounds raised by the assessee are allowed for statistical purposes. 4. In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced on 24th February, 2026 at Chennai. Sd/- Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 24.02.2026 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "